Management Board Gives First-Round Approval to $2.3 Million Budget for 2017

Thursday, December 8, 2016

Management Board Gives First-Round Approval to $2.3 Million Budget for 2017

The Foundry Management Board, a nine-person elected group, meets monthly to discuss and make decisions concerning the management of the church.

The Management Board’s November-December meeting focused on year-end finances, the 2017 budget, and a discussion of the steps necessary to move Foundry finances and budgeting into better balance.

Members present at the December 6 meeting were Leigh Carter, Louise Franklin, Matt Hansen, Sam Kilpatrick, Doug Steele, Samantha Sweeney, P.J. Taylor, and Dan Vock. Also present were Pastors Ginger Gaines-Cirelli, Dawn Hand, Al Hammer, and Will Green.

Next Year’s Budget

By a 7-1 vote, the Board approved a $2.3 million budget for 2017, funded with $1.5 million in pledge income, designated revenues (those contributed for a specific program or purpose) and other non-pledge income.

Much of the discussion concerned the need to move from deficit budgets, which the Board has approved for the last two years. Those budgets reflect an intentional decision to invest in staff, ministries, and programs in order to grow the congregation and, in turn, to strengthen discipleship and grow revenues. The deficit budgets have required the Board to draw down funds from the operating reserves each of the last several years.

Treasurer and Finance Committee Chairman Matt Hansen presented a recommendation from the committee that the Board agree to reduce to 10 percent or less the amount of reserve funds budgeted for use in each future annual budget. Reserve funds include both the new Strategic Investment Fund and the operating reserves. In 2016 reserves were budgeted to provide 13.4 percent of the church’s budgeted revenues.

The Board agreed to that recommendation and moved to reduce the amount of reserves budgeted as revenue in the current draft of the 2017 budget. To accomplish that, an additional $142,000 in revenue must be raised. At its February meeting the Board will revisit, if necessary, revise the budget before giving it final approval.

The Board also agreed that the current practice of budgeting a deficit and use of money from the reserves year after year is neither sustainable nor good financial management. It directed the Finance Committee and the finance staff to develop a plan for returning to a fully balanced budget in the next three to five years.

Finance Update

As of October 31, 2016, Foundry was operating with a deficit of $304,115, in part because of a budgeted deficit of $162,000 and part because of a shortfall in pledge giving.

As of that date, expenses were $1,682,453 and revenue was $1,378,338.


Submitted by the Strategic Communications Ministry Team


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